“Since the beginning of the earnings season, 4Q21 EPS has been revised up 4.3% to $53.48 (+26% y/y) and 2022 EPS has been revised up 0.6% at $224.90 (+8% y/y),” JPMorgan’s Dubravko Lakos-Bujas wrote on Thursday. “Looking to the following year, 2023 EPS has been revised up 0.7% since the beginning of the earnings season to $247.54 (+10% y/y).”
The good news is all of this inflation may soon cool off with the Federal Reserve signaling its willingness to take aggressive action to contain inflation. Indeed, BofA strategist Savita Subramanian wrote on Monday that the Fed’s efforts to fight inflation represented a for corporate earnings.
There’s no question that the economy is confronting a lot of crosscurrents. But even amid the uncertainty, there is a lot of evidence that shows prospects are more bullish than bearish.